Here’s Why GoPro and NXP Plunged Today -- Tech Roundup

GoPro  (GPRO) shares declined by 15.2% Thursday, closing at $25.62, after the action camera maker reported disappointing third-quarter earnings on Wednesday, generating only $400 million in revenue and falling short of its own guidance. Adjusted earnings per share were 25 cents, missing analysts'  projections by 4 cents.

GoPro stock is now down over 64% over the past 12 months.

For the upcoming fourth quarter, GoPro is predicting around $500 million in sales, a 17% slide year over year. Analysts surveyed by Thomson Reuters expect the company to earn an adjusted 44 cents a share on $552.25 million in sales. Read TheStreet's report on GoPro's earnings.

Some investors are now looking at the stock as a buying opportunity.

On CNBC's "Fast Money Halftime" show, Jon Najarian, co-founder of Optionmonster.com and Trademonster.com, said he finally bought the stock. With a low market cap and valuation that's finally attractive, GoPro looks to have "a lot of upside from here," he said.

Najarian added that GoPro is a "go-to" holiday gift and its brand is very powerful.

Read TheStreet's full report on what Najarian and other traders were saying about GoPro on Fast Money Halftime.

Shares of Ambarella (AMBA) , a chip supplier to GoPro, also declined on Thursday. Ambarella dropped by 10.8%, closing at $50.38.


NXP Semiconductors (NXPI) plummeted by 19.7% Thursday, closing at $73, after the company, which provides chips to the Apple (AAPL) iPhone, reported third-quarter profits that beat expectations but sales that missed estimates.

"As we entered the third quarter, we noted a weakening of demand as our customers began to communicate concerns with an uncertain economic environment," NXP CEO Richard Clemmer said in a release. "As the third quarter progressed, our end-customers, across multiple end-markets continued to voice an increased and significant degree of uncertainty around any increase in demand. This has resulted in lower than planned sell-through and an increase of channel inventory. As a result, our guidance for the fourth quarter reflects a much more cautious view of near term sales which may occur during the quarter."

Many analysts are now viewing NXP as an ideal buying opportunity. Read TheStreet's report.

In tandem with NXP, shares of Freescale Semiconductor (FSL) dropped by 16.7% Thursday, closing at $31.69. Freescale has agreed to be purchased by NXP.


Yelp (YELP) rose by 4% Thursday, closing at $22.95, after the company reported third-quarter earnings that beat analysts' estimates. Read TheStreet's full report.

In a research note, Robert Peck, managing director at SunTrust Robinson Humphrey, said his firm maintains a buy rating on Yelp, with a year-end 2016 price target of $32.


Shares of F5 Networks  (FFIV) dropped by 9.3%, closing at $110.08, after the company reported quarterly earnings late Wednesday. F5 Networks' profits beat expectations, but its quarterly revenue fell short of the Wall Street consensus estimate.

Read TheStreet's interview with F5 Networks CEO Manny Rivelo, who discusses his company's financial performance.


Sony  (SNE) reported a second-quarter operating profit on robust sales of its PlayStation 4 video game, Reuters reported.

"Sony said its July-September operating profit came to 88 billion yen ($729 million), its best second-quarter operating profit in eight years," the news service said. "The profit was also a touch above the 87.3 billion yen average estimate of nine analysts surveyed by Thomson Reuters.

"In the same quarter last year, it booked a loss of 85.6 billion yen due to impairment charges for the mobile business."

Sony shares declined by 3%, closing at $28.10.


Apple has asked the U.S. Supreme Court to overturn a lower court decision that found the technology giant conspired with five companies to raise e-book prices, Reuters reported.

In its petition Apple said the "June decision by the 2nd U.S. Circuit Court of Appeals in New York contradicted Supreme Court precedent and would chill innovation and risk taking," the news service said.

Apple shares rose by 1.1%, closing at $120.53.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

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